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South Korea's Exports Soar 49.4% on Unprecedented Chip Demand

South Korea's exports surged by 49.4% year-on-year in the first 20 days of April, reaching $50.4 billion. The explosive growth was primarily driven by semiconductor exports, which jumped 182.5% to $18.3 billion, leading to a trade surplus of $10.4 billion. Exports to major partners like China and the US saw massive increases of 70.9% and 51.7% respectively. However, officials warn of challenges from global uncertainties, prompting plans for expanded financial support for exporters.

Key Points: S. Korea Exports Jump 49.4% on Strong Chip Demand

  • Exports hit $50.4B in early April
  • Semiconductor exports skyrocket 182.5%
  • Trade surplus reaches $10.4 billion
  • Exports to China surge 70.9%
2 min read

S. Korea's exports jump 49.4 pc on robust chip demand

South Korea's exports surged 49.4% in early April, driven by a 182.5% spike in semiconductor shipments, achieving a $10.4 billion trade surplus.

"We will swiftly execute supplementary budget programs that include expanded export vouchers and financial support. - First Vice Finance Minister Lee Hyoung-il"

Seoul, April 21

South Korea's exports surged 49.4 per cent from a year earlier in the first 20 days of this month, driven by strong demand for semiconductors, data showed on Tuesday.

Outbound shipments reached $50.4 billion in the April 1-20 period, compared with $33.7 billion tallied over the same period last year, according to the data from the Korea Customs Service. The tally marked the highest figure for the first 20 days of April, reports Yonhap news agency.

Imports increased 17.7 percent on-year to $39.9 billion during the period, resulting in a trade surplus of $10.4 billion, the data showed.

Semiconductor exports spiked 182.5 percent on-year to $18.3 billion during the period, while outbound shipments of computers and related equipment soared 399 percent to $2.2 billion.

Exports of petroleum products rose 48.4 percent to $3.2 billion, and ship exports shot up 76.6 percent to $1.8 billion. Steel also gained 8.6 percent to $2.6 billion.

On the other hand, exports of automobiles and auto parts dropped 14.1 percent and 8.8 percent to $3.1 billion and $1.1 billion, respectively.

By destination, exports to China expanded 70.9 percent to $11.2 billion, while shipments to the United States climbed 51.7 percent to $9.3 billion.

Exports to Vietnam, the European Union and Japan added 79.2 percent, 10.5 percent and 40.7 percent to $5.5 billion, $4.4 billion and $2.1 billion, respectively.

Notably, crude oil imports gained 13.1 percent to $4.8 billion in the first 20 days of April, marking the third consecutive month of an on-year increase amid a sharp rise in international oil prices caused by the ongoing Middle Eastern crisis, the data showed.

"Despite strong export performance led by semiconductors, conditions remain challenging due to growing global uncertainties, including the conflict in the Middle East and tariffs imposed by major economies," First Vice Finance Minister Lee Hyoung-il said during a meeting with exporters in Seoul.

"We will swiftly execute supplementary budget programs that include expanded export vouchers and financial support. We also plan to offer customised financial packages and deliver tailored support, such as briefings on logistics and foreign exchange rate fluctuations, to help firms respond to rapidly changing export conditions," he added.

Lee heads a task force launched earlier this month to support exporters in achieving the goal of US$1 trillion in exports by 2030.

- IANS

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Reader Comments

P
Priya S
While the numbers are impressive, the article also mentions the drop in auto exports. Shows even strong economies have their challenges. The global situation with oil prices and Middle East conflict is a worry for all of us. Hope our policymakers are taking notes.
R
Rohit P
Look at that trade surplus! $10.4 billion in just 20 days. South Korea is a manufacturing powerhouse. Their exports to China and US are huge. We should learn from their export promotion strategies. The task force for $1 trillion exports by 2030 is a clear, ambitious goal.
S
Sarah B
The data is strong, but the Vice Minister's caution is important. "Growing global uncertainties" is the key phrase. As someone working in trade, the combination of geopolitical tension and potential tariffs is a real headache for businesses everywhere, including here in India.
K
Karthik V
The jump in exports to Vietnam (79.2%) is very interesting. Shows the shifting supply chains in Asia. India has a great opportunity to position itself as a reliable alternative in electronics and chip packaging. We need to move faster on ground, though. Bureaucracy slows us down.
M
Meera T
Semiconductors are the new oil. Every country wants a piece of it. South Korea's success is built on decades of investment and R&D. India's PLI scheme is a good start, but we need sustained focus for 10-15 years, not just 5-year plans. Education and skilling are key.

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